Wells Valuation

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WFC -- USA Stock  

 Earnings Call  This Week

Do you wonder what the value of Wells Fargo is? Wells Fargo Free Cash Flow is expected to decrease significantly based on the last few years of reporting. The past year's Free Cash Flow was at 152.1 Million. The current year Cash and Equivalents Turnover is expected to grow to 0.77, whereas Net Cash Flow Business Acquisitions and Disposals is expected to decline to (36.1 B). Wells Fargo maintains a prevalent Real Value of $28.11 per share. The last-minute price of the company is $24.46. At this time, the company appears to be undervalued. Our model calculates the value of Wells Fargo from examining the company fundamentals such as shares outstanding of 4.1 B, return on asset of 0.75 %, and profit margin of 19.02 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage taking in undervalued securities and trading overvalued securities since, at some point, asset prices and their ongoing real values will grow together.

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Wells Fargo Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Wells Fargo's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today
24.46
8th of July 2020
28.11
Real Value
32.27
Upside
Wells Fargo is not too volatile asset. Calculation of real value of Wells Fargo is based on 3 months time horizon. Increasing Wells Fargo time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Earnings
Estimates (10)
LowProjected EPSHigh
-1.610.711.75
Details
Hype
Prediction
LowEstimated ValueHigh
20.3024.4628.62
Details
22 Analysts
Consensus
LowTarget PriceHigh
19.0034.2160.00
Details

  Wells Fargo Investments

Wells Valuation Drivers Correlation

Many accounts on the financial statements of Wells Fargo are highly interrelated and sometimes correlated. Consequently, when conducting Wells's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Wells
Click cells to compare fundamentals   View All Correlations

Wells Market Cap

Wells Fargo is rated below average in market capitalization category among related companies. Market capitalization of Banks?Diversified industry is at this time estimated at about 977.34 Billion. Wells Fargo retains roughly 103.89 Billion in market capitalization claiming about 11% of stocks in Banks?Diversified industry.
Capitalization  Workforce  Revenue  Valuation  Total debt

Wells Fargo Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Wells Fargo's current stock value. Our valuation model uses many indicators to compare Wells Fargo value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Wells Fargo competition to find correlations between indicators driving Wells Fargo's intrinsic value. More Info.
Wells Fargo is rated below average in five year return category among related companies. It is rated fifth in price to sales category among related companies fabricating about  0.41  of Price to Sales per Five Year Return. The ratio of Five Year Return to Price to Sales for Wells Fargo is roughly  2.45 . Wells Fargo Price to Sales Ratio is expected to slightly increase based on the last few years of reporting. The past year's Price to Sales Ratio was at 3.79. The current year Price to Book Value is expected to grow to 1.92, whereas Return on Sales is expected to decline to 0.32.

About Wells Fargo Valuation

The Macroaxis Equity Valuation Mechanism determines the current worth of Wells Fargo on a weekly bases. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Wells Fargo. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Wells Fargo based exclusively on its fundamental and basic technical indicators. By analyzing Wells Fargo's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Wells Fargo's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Wells Fargo. We calculate exposure to Wells Fargo's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Wells Fargo's related companies.
Last ReportedProjected for 2020
Gross Profit76 B62.2 B
Profit Margin 18.81  18.97 
Wells Fargo Company, a diversified financial services company, provides banking, investment, mortgage, and consumer and commercial finance products and services to individuals, businesses, and institutions in the United States and internationally. The Company was founded in 1852 and is headquartered in San Francisco, California. Wells Fargo operates under BanksDiversified classification in the United States and is traded on BATS Exchange. It employs 263000 people.

Wells Fargo Dividends Analysis For Valuation

The current year Preferred Dividends Income Statement Impact is expected to grow to about 1.8 B, whereas Payment of Dividends and Other Cash Distributions is expected to decline to (10.7 B). . Wells Fargo Accumulated Retained Earnings Deficit are expected to increase significantly based on the last few years of reporting. The past year's Accumulated Retained Earnings Deficit were at 119.77 Billion. The current year Price to Earnings Ratio is expected to grow to 17.32, whereas Earning Before Interest and Taxes EBIT is expected to decline to about 22.8 B.
Last ReportedProjected for 2020
Preferred Dividends Income Statement Impact1.8 B1.8 B
Payment of Dividends and Other Cash Distributions-10.4 B-10.7 B
Dividend Yield 0.0322  0.0321 
Dividends per Basic Common Share 1.37  1.11 
There are various types of dividends Wells Fargo can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Wells shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Wells Fargo directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Wells pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Wells Fargo by the value of the dividends paid out.

Wells Fargo Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Wells Fargo does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth-88.90%
Revenue Growth-34.00%
Payout Ratio69.23%
Earnings Growth-99.20%
Enterprise Value To Revenue1.58

Wells Fargo Current Valuation Indicators

Valuation refers to the process of determining the present value of Wells Fargo and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Wells we look at many different elements of the entity such as Wells's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Book Value per Share
Enterprise Value over EBIT
Enterprise Value over EBITDA
Price to Book Value
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